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How To Raise Money For Starting A Business

Starting A Business
Photo by Steve Pb on Pixabay

Raising capital for a business is not as difficult as you think. Especially when you have a concept that can make your investors rich. Your first step is to put together a prospectus.

This prospectus needs to include your curriculum vitae.

You should also include your financial history. You will need to describe how the requested fund is going to be used. For an existing business, you will have to include your company’s financial statement for the last six months, and explain how this additional funding will generate more profits.

For a new business, you will need to submit your prospectus with your business plan. It will be wise to estimate your costs high, and your returns low. This will help you to survive the volatility inherent in all business startups. This prospectus will affirm what your investors will get in return for their money.

For example, interest percentage, profits percentage, business percentage, or a seat on your board of directors. Investors use their money to make more money. They want to make as much as they can, whether it is short or long term. In order to convince them to invest, you not only must offer an opportunity for big profits, but you must also spell it out in detail, and back up your claims with proof from your marketing research.

Investors are familiar with high risk ventures, yet they all want as little risk as possible.

So it will be good to include a list of your business and personal assets. When you have your prospectus prepared, know how much money you want, exactly how it will be used, and how you intend to repay it, you are ready to start looking for investors.

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